The Official Report is a written record of public meetings of the Parliament and committees.
All Official Reports of meetings in the Debating Chamber of the Scottish Parliament.
All Official Reports of public meetings of committees.
Displaying 3032 contributions
Public Audit Committee
Meeting date: 10 September 2025
Colin Beattie
Let me ask you one final, simple question. My colleague Graham Simpson has been talking about potential losses and so on. What happens if there are losses that the bank cannot manage within its budget cover? How do you manage that in relation to the risk to public finances? Presumably, the Government stands behind the bank.
10:30Public Audit Committee
Meeting date: 10 September 2025
Colin Beattie
If the bank was operating on a purely commercial basis, it would have to reflect risk through the interest rates and so on that were being charged. That would defeat some of the objectives around investing in companies and encouraging them to develop, as the rates and the fees that would be attached would be punitive. Presumably, there must be an element of flexibility when it comes to SNIB setting rates at a level that might be below a commercial rate so that a company can afford to take on the loan.
Public Audit Committee
Meeting date: 10 September 2025
Colin Beattie
It sounds to me as though there are a few conflicts that have not been worked out, but I will move on.
Funding arrangements are important for the bank. Historically, it had to use its income in the same financial year. Of course, single-year capital allocations from the Scottish Government are quite difficult to align with properly commercial activity. The Scottish Government’s response to that was to give the bank £25 million of underspend or overspend for the next year. When the bank gave evidence to the committee, it said that it welcomed that, but that it did not go as far as it thought was needed. Why was that?
Public Audit Committee
Meeting date: 10 September 2025
Colin Beattie
The £25 million has been agreed. What bits were not agreed?
Public Audit Committee
Meeting date: 10 September 2025
Colin Beattie
I am sure that the Government would want that as well. Was that the only issue that was under discussion, or were there other issues for which you were unable to agree to what the bank was asking for?
Public Audit Committee
Meeting date: 10 September 2025
Colin Beattie
I accept that in relation to the multiyear settlement and all the rest of it—with the way that things are, there has to be alignment with what the UK Government is doing. Other than that particular multiyear settlement, what needs did the bank have that were not met?
Public Audit Committee
Meeting date: 10 September 2025
Colin Beattie
Okay. I will leave that point.
Historically, SNIB has mainly been funded through financial transactions, and those are running out. I am interested to get a grip on how the repayments work. From the Scottish Government’s point of view, it is only required to refund about 80 per cent of the financial transactions, if I recall correctly—I am talking from memory. My understanding is that, when a repayment that is related to financial transactions is made to SNIB, it must immediately make that payment to the Scottish Government. How are you managing that and how, if at all, does it impact on the £25 million?
Public Audit Committee
Meeting date: 10 September 2025
Colin Beattie
Just to tie up this question of the £25 million mechanism, I assume that you will be reviewing it from time to time to ensure that it is the solution that you think that it is.
Public Audit Committee
Meeting date: 10 September 2025
Colin Beattie
We have been talking about the bank becoming a perpetual fund, which would obviously have lots of advantages all round. Clearly, you are in discussions with the Treasury over this, presumably on a regular basis.
Public Audit Committee
Meeting date: 3 September 2025
Colin Beattie
The report sets out that the college and the auditor agreed that the investment in CSL should be accounted for using the equity method, in accordance with financial reporting standard 102. Could you explain in a bit more detail what that means?